Firebird Metals (ASX:FRB) has signed a non-binding memorandum of understanding with French mining and metallurgy company Eramet (EPA:ERA) for the supply of manganese ore.
The ore will be supplied for the first stage of operations at Firebird’s proposed battery grade manganese sulphate and manganese tetra-oxide plant in China. Stage one aims to produce 50,000 tonnes per year of battery grade manganese sulphate and 10,000 tonnes of manganese tetra-oxide per year using third-party ore.
The agreed annual supply volume exceeds the 66,000 tonnes per year outlined in Firebird’s Feasibility Study, and as such, the additional tonnage serves as a strategic buffer to mitigate potential disruptions across the logistics chain.
Both companies will work to convert the memorandum of understanding into a long-term supply agreement by 2026, upon completing financing and during the plant’s construction.
Firebird, which has a market capitalisation of $13.95 million, notes that this transition is contingent upon it achieving key milestones, including securing project financing, starting construction of the processing plant, and initiating ore requirements for production.
Managing Director Peter Allen says securing this supply of manganese ore marks a pivotal step in expediting the company’s journey to production and building a foundation for sustainable cashflow generation.
“Firebird has made rapid progress in the execution of our unique lithium manganese iron phosphate (LMFP) strategy, attracting and securing high-profile partnerships that reinforce the strength of our strategic vision and increasing confidence in our ability to deliver on key milestones,” Allen says.
“This agreement with Eramet reflects our commitment to establishing a vertically integrated operation, and positions us to deliver on our long-term strategy of supporting the clean energy transition by becoming a key supplier of manganese for LMFP batteries.”
Eramet is focused on recovering and developing metals that are essential to the construction of a more sustainable world. The company primarily focuses on manganese, mineral sands, nickel, and lithium.
Firebird Metals is a manganese developer focused on combining mining and downstream processing to advance the EV battery sector.
In November 2023, Firebird established a strategy to supply battery grade manganese sulphate directly into the growing battery market. Within less than 12 months since its incorporation in China, Firebird’s subsidiary Human Firebird Battery Technologies has secured all key permits and achieved preliminary design approval for the plant.
The company is on track to complete its planning work on schedule and within budget. The proposed plant will cover 12.09 hectares.
Write to Aaliyah Rogan at Mining.com.au
Images: Firebird Metals
